Chesapeake Energy 1995 Annual Report Download - page 4

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LETTER TO SHAREHOLDERS
Through your investment in Chesapeake Energy Corporation, you have
expressed confidence in Chesapeake's management and our strategy for
continuing the growth of the company's reserves, production, cash flow, and
earnings. More importantly, we understand that you expect your investment
with us to increase in value. Therefore, we are pleased to report that in fiscal
1995, Chesapeake generated a 563% increase in shareholder value - the
highest among all companies in the independent energy sector. This was
achieved despite a 20% decline in natural gas equivalent prices during the
fiscal year.
A key feature distinguishing Chesapeake from its peers has been its ability
to produce superior returns to shareholders during periods of flat to lower
commodity prices. We have built Chesapeake not just to survive these periods,
but to grow and prosper in adverse environments. Our goal has been to create
a new model for success as an independent energy producer by building on
Chesapeake's competitive advantages described below.
Chesapeake competitive advantages include:
Growth through the drilibit business strategy;
Large inventory of future drilling opportunities;
Advanced technological expertise in focused operating areas;
Superior operating margin from effective cost control, and;
Close alignment of shareholder and management interests.
Before explaining why we believe these competitive advantages can continue
to generate meaningful returns to our shareholders, we would like to highlight
our operating and financial results for fiscal 1995.
2CHESAPEAKE ENERGY CORPORATION